Comparing the best accounting apps for SaaS companies

As a SaaS leader, you understand the importance of using the right software tools to optimize your operations and streamline your financial management. Accounting apps play a crucial role in helping you stay on top of your company's financial health and ensuring that you meet all regulatory compliance requirements.

With a plethora of accounting apps available on the market, selecting the one that best fits your SaaS business can be challenging. In this comprehensive guide, we’ll compare the top accounting apps for SaaS companies to help you make an informed decision.

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Why SaaS companies need specialized accounting apps

Before we delve into the comparison of the best accounting apps for SaaS businesses, let's explore why they require specialized accounting software. SaaS companies have unique business models and financial management requirements that differentiate them from other businesses. Some of these unique characteristics include:

1. Recurring revenue: SaaS companies primarily generate revenue through subscriptions, which results in recurring revenue streams that need to be accurately tracked and managed.
2. Deferred revenue: Since customers pay upfront for a subscription period, SaaS companies need to recognize the revenue over the duration of the subscription, which calls for proper deferred revenue management.
3. Complex pricing models: SaaS businesses often have tiered pricing models, volume-based pricing, or customizable plans, which add complexity to revenue recognition and financial reporting.
4. International customers: SaaS companies typically serve customers across different countries, requiring them to manage multiple currencies, exchange rates, and tax regulations.

Given these unique requirements, SaaS companies need accounting apps that can handle the complexities of their business models and provide them with the necessary tools to manage their finances efficiently.

Comparing the best accounting apps for SaaS companies

When evaluating accounting apps, consider the following factors:

1. Features: Ensure that the accounting app offers the necessary features to manage your SaaS company's unique financial needs, such as revenue recognition, deferred revenue management, and multi-currency support.
2. Pricing: Compare the pricing plans of various accounting apps to find a solution that fits your budget without compromising on essential features.
3. Ease of use: Look for an accounting app with a user-friendly interface and intuitive navigation to ensure that your team can quickly adopt and use the software effectively.
4. Integrations: Choose an accounting app that integrates seamlessly with your existing business tools, such as CRM, e-commerce platforms, and project management software.
5. Support and Resources: Opt for an accounting app that offers comprehensive support and resources, such as a help center, video tutorials, and webinars, to help your team learn the software and troubleshoot any issues that may arise.

Based on these factors, here are some of the best options on the market.

Xero

Xero is a cloud-based accounting app that caters to the needs of small and medium-sized businesses. With its robust feature set and user-friendly interface, Xero has gained popularity among SaaS businesses for its ability to handle complex financial transactions and reporting.

Key features

• Comprehensive financial reporting, including revenue recognition and deferred revenue management
• Multi-currency support with real-time exchange rate updates
• Integration with popular payment gateways and e-commerce platforms
• Customizable invoicing and billing templates
• Built-in project management tools for tracking time and expenses

Pricing

Xero offers three pricing plans: Early, Growing, and Established. The Growing and Established plans offer unlimited users and the ability to send invoices and quotes, while the Established plan also includes multi-currency support and project management features.

Ease of use

Xero is known for its intuitive and user-friendly interface, making it easy for users to navigate and find the features they need. The app also offers a comprehensive help center and various resources, such as webinars and training videos, to assist users in mastering the software.

Integrations

Xero integrates with over 800 third-party apps, including popular CRM, e-commerce, and project management tools. This makes it easy for SaaS companies to connect their accounting system with other essential business tools.

QuickBooks Online

QuickBooks Online is a popular accounting app that caters to a wide range of industries, including SaaS businesses. With its extensive feature set and powerful reporting capabilities, QuickBooks Online is a reliable option for SaaS companies looking for a comprehensive accounting solution.

Key features

• Advanced financial reporting, including customizable reports and revenue recognition
• Multi-currency support and automatic exchange rate updates
• Integration with popular payment gateways and e-commerce platforms
• Automated invoicing and billing, including recurring invoices
• Project tracking for monitoring expenses and profitability

Pricing

QuickBooks Online offers four pricing plans: Simple Start, Essentials, Plus, and Advanced. The Essentials, Plus, and Advanced plans include support for multiple users, while the Plus and Advanced plans offer project tracking and inventory management. The Advanced plan also includes advanced reporting and analytics tools.

Ease of use

QuickBooks Online is designed with user-friendliness in mind, featuring a clean interface and intuitive navigation. The app provides a wealth of resources, including a help center, video tutorials, and webinars to help users get up to speed quickly.

Integrations

QuickBooks Online integrates with over 650 third-party apps, covering a wide range of categories, such as CRM, e-commerce, and project management. This extensive integration ecosystem allows SaaS companies to connect their accounting system with other essential business tools seamlessly.

Interested in learning more? See our guide to Quickbooks vs. Netsuite for info on how these two solutions compare.

FreshBooks

FreshBooks is an accounting app designed specifically for small businesses and freelancers, offering a simple and intuitive interface that makes managing finances easy. While not explicitly tailored for SaaS companies, FreshBooks includes features that can accommodate the unique needs of these businesses.

Key features

• Customizable invoicing and billing, with support for recurring invoices and auto-billing
• Multi-currency support and automatic exchange rate updates
• Time and expense tracking for projects
• Revenue recognition and deferred revenue management
• Integration with popular payment gateways and e-commerce platforms

Pricing

FreshBooks offers four pricing plans: Lite, Plus, Premium, and Select. The Plus and Premium plans support a higher number of clients and include features such as multi-currency support and project tracking. The Select plan offers custom pricing for businesses with more extensive needs and includes a dedicated account manager and priority support.

Ease of use

FreshBooks is known for its user-friendly interface and straightforward navigation, making it an excellent option for businesses that prioritize ease of use. The app also offers a comprehensive help center, video tutorials, and webinars to assist users in getting the most out of the software.

Integrations

FreshBooks integrates with over 100 third-party apps, including popular CRM, e-commerce, and project management tools. While not as extensive as other accounting apps, the integration ecosystem covers the essential categories for SaaS companies.

Sage Intacct

Sage Intacct is a cloud-based accounting app designed for mid-sized and enterprise-level businesses, offering advanced features and powerful reporting capabilities tailored to the unique needs of SaaS companies.

Key features

• Advanced financial reporting, including revenue recognition, deferred revenue management, and multi-dimensional reporting
• Multi-currency support and automated exchange rate updates
• Customizable invoicing and billing, including support for complex pricing models
• Integration with popular payment gateways, e-commerce platforms, and CRM tools
• Robust security and compliance features, including SOC 1 and SOC 2 compliance

Pricing

Sage Intacct offers custom pricing based on each company's needs and requirements. To receive a quote, you need to contact the Sage Intacct sales team.

Ease of use

While Sage Intacct is designed to handle more complex financial management needs, the app maintains a user-friendly interface and straightforward navigation. The app also offers various resources, such as a help center, video tutorials, and webinars, to help users get up to speed quickly.

Integrations

Sage Intacct integrates with over 200 third-party apps, covering a wide range of categories, such as CRM, e-commerce, and project management. This extensive integration ecosystem allows SaaS companies to connect their accounting system with other essential business tools seamlessly.

Choosing the right accounting app for your SaaS company

Selecting the right accounting app for your SaaS company depends on your business size, specific needs, and budget. Each of the accounting apps we've compared offers unique advantages and features that cater to different business requirements.

• If you’re a small or medium-sized SaaS company looking for a user-friendly and cost-effective solution, Xero or FreshBooks may be the best fit.
• If you need more advanced features and powerful reporting capabilities, QuickBooks Online or Sage Intacct may be more suitable for your business.

By carefully evaluating the accounting apps available on the market and considering the factors mentioned above, you can find the ideal solution that meets your SaaS company's unique financial management needs. An effective accounting app will not only help you maintain accurate financial records but also enable you to make better-informed business decisions, ultimately contributing to your company's growth and success.